Indorsements Law and Legal Definition

An indorsement is the act of transferring title to a written negotiable instrument by having the temporary owner write his name on the back of the instrument. The Uniform Commercial Code (UCC), which has been adopted in some form by nearly all states, defines an indorsement as follows:

"Indorsement" means a signature, other than that of a signer as maker, drawer, or acceptor, that alone or accompanied by other words is made on an instrument for the purpose of

  1. negotiating the instrument,
  2. restricting payment of the instrument, or
  3. incurring indorser's liability on the instrument, but regardless of the intent of the signer, a signature and its accompanying words is an indorsement unless the accompanying words, terms of the instrument, place of the signature, or other circumstances unambiguously indicate that the signature was made for a purpose other than indorsement. For the purpose of determining whether a signature is made on an instrument, a paper affixed to the instrument is a part of the instrument."